Andraž Štalec
IMPLEMENTATION OF
AI IN MARKETING
PEOPLE THINK THAT AI IS DRIVEN BY TECHNOLOGY,
BUT IT’S NOT.
THE FUNDAMENTAL RULES OF INTERNET HAVE CHANGED
Internet Users 2009 - 2018
Internet trends 2019, Kleiner Perkins
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
1
2
3
4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Desktop YoY Growth
MOBILE IS DRIVING DIGITAL MEDIA USAGE
Time spent per user per day with digital media
eMarketer 9/16, eMarketer 4/15, eMarketer 4/17, eMarketer 10/17, eMarketer 10/18
0.2 0.3 0.4 0.3 0.3 0.3 0.3 0.4 0.4
0.6 0.7
2.2
2.3
2.4 2.6 2.5
2.3 2.2 2.2 2.2 2.1 2.00.3
0.3
0.4
0.8
1.6
2.3
2.6
2.8
3.1
3.3
3.6
0
1
2
3
4
5
6
7
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Other Connected Devices Desktop/Laptop Mobile
DIGITAL EXPERIENCE IS MOVING
FROM DESKTOP TO MOBILE
125 % INCREASE IN MOBILE REVENUE YOY
Online user behavior 2018, Red Orbit 9/2018
GLOBAL MOBILE COMMERCE REVENUE IS PROJECTED TO
REACH $669 BILLION DOLLARS THIS YEAR.
Global m-commerce sales rose by 43.9% in 2017
Worldwide mobile retail commerce revenue 2012-2018, Statista 2018
A whole new world? Practically—and it’s just 2 months away.
BY 2020, MORE PEOPLE WILL HAVE MOBILE PHONES
THAN RUNNING WATER OR ELECTRICITY AT HOME.
Internet usage by hour
Online user behavior 2019, Red Orbit 9/2019
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
2019 2012
USERS ARE EXPECTING MORE FROM DIGITAL
Product quality + No friction
Context
Intent
Immediacy
Micro-
moments
SEARCH IS MOVING TOWARDS VOICE
Google says that 20% of searches in the U.S. on Android devices are done by voice
50% OF SEARCHES WILL BE DONE BY VOICE BY 2020.
ComScore, Google 2018
Voice Assistants are Exploding
US Voice-Enabled Digital Assistant Users by generation, eMarketer, April 2017
0%
10%
20%
30%
40%
50%
60%
2016 2017 2018 2019
Millennials Gen X Baby boomers
WE DON’T GO SHOPPING, WE JUST ARE SHOPPING.
RECORD NUMBER OF TRANSACTIONS & REVENUE
Ecommerce detail: Consumer goods
Statista digital market outlook, January 2018
Ecommerce use among internet users
Statista digital market outlook, January 2018
Ecommerce growth by category
Statista digital market outlook, January 2018
Demand for local information continues to surge.
61% OF SHOPPERS WOULD RATHER SHOP WITH BRANDS
THAT HAVE A PHYSICAL LOCATION THAN ONES THAT ARE
ONLINE ONLY
Source: Google/Ipsos, July 2018
37 % of them are influenced by mobile
56 % OF OFFLINE STORE TRANSACTIONS ARE
INFLUENCED BY A DIGITAL INTERACTION
The future of digital influence in retail, Deloitte 2016
I LOVE SEARCH
Where else could you find things like these…
And these…
And these…
It fulfills our lives
Search query
„Nike sneakers“
Ad
„Nike sneakers“
Landing page
Nike sneakers
€-
€50,000.00
€100,000.00
€150,000.00
€200,000.00
€250,000.00
€300,000.00
€350,000.00
€400,000.00
€450,000.00
€500,000.00
Revenue
You achieve great results for your client (or company)
But then sometimes all this results in totally unexpected results
Productbrandsusersaresearchingfor
Productbrandsusersarebuying
Nike
Adidas
Salomon
Nike
Adidas
Salomon
We were so wrong
0%
brand stickiness
25%
brand stickiness
50%
brand stickiness
Productbrandsusersaresearchingfor
Nike
Adidas
Salomon
Nike
Adidas
Salomon
Because we fail to see behind the standard reports.
MOST FAILURES ARE NOT EVEN CAUSED BY PPC
CHALLENGES, BUT BECAUSE OF BAD ASSUMPTIONS
We’ve seen a decrease in Paid Search revenues of up to 80 %!
GENERIC SEARCH IS IN RAPID DECLINE
Search is behaving strangely
FREE FALL
Decrease in generic
Branded steady
BRAND TAKING
OVER
Decrease in generic
Increase in branded
GENERICS RULE
Increase in generic
BRANDS AGE. INDUSTRIES CHANGE. MARKETS GET
MATURE. EVEN ON SEARCH.
Market maturity stages and Search
https://www.red-orbit.com/blog/the-decline-of-generic-search-and-how-to-save-your-brand
Making an ASS out of U and ME
ASSUME
WHAT‘S THE PRICE FOR GE PROFILE ADVANTIUM 120?
SEARS BEST BUY AMAZON
$899,99 $809,99 currently $870,08
AI IS STARTING TO DOMINATE THE WORLD
1) GOOGLE SMART BIDDING
CONTEXTUAL
ADVERTISING
BEHAVIORAL
ADVERTISING
DEVICE
LOCATION
BROWSING
HISTORY
YOUTUBE
VIDEOS
IN-STOREKEYWORD
AUTOMATIC BID
AUDIENCE
LISTS
ONLINE
PREFERENCES
KEYWORD
MANUAL BID
BLOG POST
IN TRANSITION
LEARNING WHAT TO FEED INTO THE MACHINE (INPUT)
TO GET THE BEST RESULTS (OUTPUT)
GARBAGE IN, GARBAGE OUT
THE ALGORITHM NEEDS ENOUGH DATA AND TIME
TO LEARN AND OPTIMIZE
WHAT DOES THIS MEAN FOR AVDERTISERS?
HANDS OFF AND RETIRE TO BALI?
FROM MANUAL ADJUSTMENTS TO
GUIDING THE ALGORITHM
Common Pitfalls
MAKING
CONSTANT
CHANGES
USING TO
AGGRESSIVE
CPA OR ROAS
GOAL
ANALYZING
PERFORMANCE
WHILE IN
LEARNING
PHASE
LOOKING AT
THE WRONG
METRICS
2) ORGANIC SEARCH
Google is using User Signals to rank your website
Bounce rate &
Time on Site 01
02 04
03 05 User location data
ReviewsCTR
Return-to-SERP rate
How can we influence user signals?
Content
optimization
Loading
time
Mobile
optimization
Social
engagement
SERPs
optimization
3) VOICE SEARCH
GOOGLE SAYS THAT 20 % OF SEARCHES IN THE U.S.
ON ANDROID DEVICES ARE DONE BY VOICE
Google 2018
Voice is driven by assistant devices and IoT
VOICE SEARCH IS NOT REPLACING TYPED SEARCH
HOW ARE VOICE QUERIES DIFFERENT?
https://moz.com/blog/how-voice-search-will-change-digital-marketing-for-the-better
SO HOW DOES ONE OPTIMIZE FOR VOICE?
What, When, Who, Where, Why, How
MOST OF VOICE QUERIES ARE INFORMATIONAL
Does, To, Much, What, How to
THEY INCLUDE WORDS WE USUALLY OMMIT IN TYPED
QUERIES
Optimize for questions
What are people searching for?
answerthepublic.com www.quora.com
Analyze your existing queries
40 % OF ALL VOICE SEARCH ANSWERS CAME FROM
A FEATURED SNIPPET
https://backlinko.com/voice-search-seo-study
Questions, prepositions, and comparisons dominate featured snippet results
https://www.semrush.com/blog/how-to-earn-google-featured-snippets-mobile-study/
Few technical guidelines
https://backlinko.com/voice-search-seo-study
SPEED
The average voice search
result page loads in 4.6
seconds
HTTPS
70.4% of Google Home
result pages are secured
with HTTPS
AUTHORITATIVE
DOMAINS
The mean Ahrefs Domain
Rating of a Google Home
result is 76.8.
AI in marketing
Content
creation
Chatbots Sentiment
analysis
Visual search Marketing
automation
4) PREDICTIVE & PRESCRIPTIVE ANALYTICS
User retention studies
User cohorts
User repeat purchase rate
User engagement rate
Growth accounting
There’s so much more you could do…
Stock management
Product pricing
Product/content
recommendations
Sales forecasting
…if only you had data.
To ensure personalization through AI, we need to capture that data
WE ARE MOVING FROM WE TO ME
TRANSACTIONA
transactions, items,
dates, value
CRM
Personal info
ONSITE BEHAVIOR
user level, stitched
OFFSITE BEHAVIOR
Email, social etc.
All the knowledge is out there, we just
have to connect the dots and share it
with the right people.
What data to capture?
ENHANCED
ECOMMERCE
YOU NEED DATA
USER
CRM DATA
CUSTOM
METRICS
CUSTOM
DIMENSIONS
USE NEW DIMENSIONS TO
CREATE ADVANCED USER SEGMENTS
Segmentation base
02
Geographic
country, city,…
01
Demographic
age, gender,
education,…
03
Product
TVs, laptops,... 04
Psychographics
Lifestyle or personality
characteristics
05
Behavioral
Purchasing or
usage behaviour
Behavioral
USER STATUS
First-time user, Regular
user
LOYALTY STATUS
Loyal, switcher, lapsed
BENEFIT SOUGHT
economy, quality, service
level, convenience,
access MARKET MATURITY
Early adopter, late adopter,
laggard
FINDING THE ANSWER TO ROPO.
We are testing marketing mix modeling to see if we can estimate
the impact of different advertising channels.
UNDERSTAND THE RELATIONSHIP BETWEEN
ADVERTISING CHANNELS AND OUTCOMES.
We can‘t keep adding more budgets – we need to
find a reliable way to redistribute it.
MY FINAL RECOMENDATIONS
Consumer journeys are too complex and offline is just too important
#1: DON‘T MEASURE LAST CLICK
This is where the new battlefront will be
#2: INVEST IN DATA
Growth needs a catalyst
#3: CHALLENGE STATUS QUO
Agile
Get shit done
Fail fast
Online access
Google Search
Social media
Online payments
Mobile
Data &
prescriptive
analytics
What fueled growth through time?
Growth impact & tactics penetration curves
Innovators Early adopters Early majority Late majority Laggars
Take advantage of new tactics & technologies
Innovators
AI
Voice search
IOT
Early adopters
CRO
Prescriptive analytics
Chatbots
Big Data
Early majority
Video advertising
Content marketing
Marketing automation
Late majority
Paid Social
SEO
Laggars
Google Search
Social Media marketing
Display advertising
LET‘S MAKE AN IMPACT!
https://www.slideshare.net/redorbit/
01 02 03 04
Email
andraz@red-orbit.com
Twitter
@andrazstalec
LinkedIn
Andraz Stalec
Web
www.red-orbit.com
Download the presentation
https://www.red-orbit.com/blog/
Further reading

Implementation of AI in marketing

Editor's Notes

  • #42 Then it hit me. Brands age. Industries change. Markets get mature. Even on search.